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22 Attorney Generals Issue Antitrust Warning Over ESG Initiatives

 |  May 16, 2023

A request has been made by approximately 20 states for insurance companies to provide documentation and communication regarding their commitment to reducing the use of fossil fuels in order to address climate change.

On Tuesday, 23 attorneys general wrote a letter to 28 insurance companies belonging to the Net-Zero Insurance Alliance and Net-Zero Asset Owner Alliance. The letter was led by Utah Attorney General Sean Reyes and Louisiana Attorney General Jeff Landry.

The attorneys general are requesting records from companies to investigate their connection with two organizations and any potential commitments made. They are concerned that these alliances may go against antitrust laws due to their encouragement of companies to comply with the Paris Agreement, an international treaty aimed at reducing the impact of climate change.

 The letter is the latest in a nationwide Republican effort to push back against corporate environmental, social, and governance initiatives, known as ESG.

Read more: The Crossroads of ESG Collaboration and Competition Law

“The ESG movement has spread to every corner of the world’s financial and energy sectors, and unsuspecting Americans are paying the price,” said Reyes. “Insurers have an obligation to protect the interests of their clients, not advance a radical environmental agenda. Utah is taking a stand against these efforts to stop the increased prices and other harms these horizontal agreements will cause.”